and many more. Thank you for watching. Thank you for watching. Thank you. Thank you for watching. Good morning, ladies and gentlemen, and welcome to the Core Natural Resources, Inc., second quarter 2026 earnings call conference call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Thursday, August 6, 2026. I would now like to turn the conference over to Deck Slone, Senior Vice President. Please, go ahead.

Good morning from Cannonsburg, Pennsylvania, everyone, and thanks for joining us today. Before we begin, let me remind you that certain statements made during this call, including statements relating to our expected future business and financial performance, may be considered forward-looking statements according to the Private Securities Litigation Reform Act. Forward-looking statements, by their nature, address matters that are, to different degrees, uncertain. These uncertainties, which are described in more detail in the annual and quarterly reports that we file with the SEC, may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required by law. I'd also like to remind you that you can find a reconciliation of the non-GAAP financial measures that we plan to discuss this morning at the end of our press release, a copy of which we have posted in the investor section of our website at corenaturalresources.com. Also participating on this morning's call will be Jimmy Brock, our chairman and CEO, Mitesh Thakkar, our president and CFO, and Bob Braithwaite, our chief commercial officer. After some formal remarks from Jimmy and Mitesh, we will be happy to take questions. With that, I'll now turn the call over to Jimmy. Jimmy?

Thank you, Deck, and good morning, everyone. The results of the second quarter were a testament to the continued execution of our strategy, and we are pleased to report a significant step up in our financial performance. We worked diligently with our insurance partners to settle the Lear South insurance claim for the full limits lost. complementing our strong operational results. Across the operating portfolio, we delivered a solid performance and are beginning to demonstrate what our full operating platform is capable of. With the insurance claim now behind us, we are singularly focused on the disciplined execution of our core business. We continue to prioritize safe, efficient operations, maintaining strong customer relationships, optimizing our cost structure and allocating capital in a way that supports long-term shareholder value creation. Now let me dive into our operational results. Coal sales within the high CV thermal segment came in at 8.4 million tons in Q2 26 compared to 7.7 million tons in Q1 of 26. During the quarter, Our high CV thermal segment reported realized coal revenue of $58.11 per ton compared to $58.86 per ton in the previous quarter. In Q226, cash costs came in at $38.58 per ton compared to $42.56 per ton in Q126. Segment cash costs benefited from significant tailwinds as mining conditions improved and others. Sales were favorable and power costs began to normalize. Adjusted EBITDA for the segment totaled $165 million, which compares to $126 million in the first quarter of 26. In the metallurgical segment, coke and coal sales came in at 2.3 million tons in Q2 26 versus 2.1 million tons in Q1 26. Our metallurgical segment reported realized coke and coal revenue of $121.43 per ton. The segment as a whole, including 300,000 tons of thermal byproduct sales, achieved an average selling price of $114.13 per ton. Cash costs for the quarter came in at $85.65 per ton, nearly a $7 per ton reduction quarter over quarter. reflecting ongoing improvement and execution at our flagship Longwall Mines. Adjusted EBITDA for the segment was $200 million, which included insurance-related proceeds of $125 million. In the Powder River Basin segment, coal sales came in at 10.2 million tons in Q2 26, compared to 11.9 million tons in the previous quarter. The lower volumes were a function of weak demand during the spring shoulder season, exacerbated by low natural gas prices. Importantly, however, we view the reduced quarterly volumes principally as a timing issue. We have more than 50 million tons of PRB coal committed for delivery in 2026 and expect to either ship those tons this calendar year or, conversely, to capture or even enhance the full value of those committed commitments via other mechanisms, such as blend and extend initiatives. In addition, we continued to build pit inventory during the quarter, which should serve to enhance operating margins in the year's back half. For the second quarter, our PRB segment reported realized coal revenue of $14.28 per ton and cash costs of $14.85 per ton. Moving to the core marine terminal. The CMT shipped 5.2 million tons during the second quarter, compared to 4.8 million tons in Q126. CMT reported $18 million in adjusted EBITDA in Q226, which was increased compared to the $16 million in the previous quarter. We had another strong quarter from a shareholder return perspective as well. As you know, our capital return framework targets the return to stockholders of around 75% of free cash flow, with a significant majority of that total directed to share repurchases. During Q2 26, we returned $68 million to shareholders, which was a substantial increase from $47 million in Q1 of 26. Since the program's inception in February of 2025, we have returned over 80% or and others. Before handing the call over to Mitesh, Let me highlight one additional positive development, this one involving Core Innovations. Recently, the Innovations team was selected for a grant from the U.S. Department of Energy to construct a pilot-scale facility for the extraction of rare earth elements and critical minerals at the Pennsylvania Mining Complex. This announcement underscores Core's ongoing progress in developing innovative technologies that unlock greater value from the coal supply chain while advancing areas of national strategic importance. It follows an announcement made earlier this year in which Northrop Grumman named Core Touchstone Advanced Composite Group a key supplier of tooling and components for the Talon Blue collaborative combat aircraft. Now let me turn the call over to Mitesh to provide the marketing financial updates.

Thank you, Jimmy, and good morning, everyone. Let me start by providing an update on our financial performance first. This morning, we reported solid second quarter financial results. For 2Q26, we reported net income of $126 million, or $2.51 per diluted share, and adjusted EBITDA of $324 million, compared to net income of $21 million and adjusted EBITDA of $180 million in 1Q26. These results were driven by strong operational performances from our high-CV thermal and metallurgical segments, as well as the recognition of incremental insurance proceeds related to the limits loss settlement of our Lear South insurance claim. During the quarter, CORE generated $148 million in free cash flow, which included the receipt of $88 million of cash associated with the total Lear South settlement. The Lear South insurance claim was settled for $155 million in aggregate, of which $125 million was recognized in EBITDA in Q2, and approximately $30 million was recognized in previous quarters. All outstanding receivables at the end of the second quarter associated with the Lear South claim were collected by the end of July. In addition, 2Q working capital was inflated by an increase in inventory value, as well as a 45X tax credit accrual that should provide a tailwind in future periods. At the end of second quarter, We had total liquidity of $1 billion, including $474 million in unrestricted cash and cash equivalents and short-term investments, which reflects an increase of $81 million in liquidity compared to the first quarter of 2026. Before transitioning to a discussion of our marketing efforts, I'd like to take a moment to extend my sincere thanks to our insurance partners and brokers. as well as the Lear South and corporate teams for their dedication and collaboration in successfully closing out our Lear South insurance claim. Our insurance partners worked efficiently and diligently throughout the process, and we greatly appreciate their responsiveness, thoroughness, and commitment to finalizing this matter in a timely fashion. Their collective efforts were instrumental in achieving a successful resolution, and we are pleased to be turning the page on last year and directing our focus towards the future. Now let me update you on the coal market dynamics and the efforts of our marketing team. On the metallurgical front, macroeconomic factors stemming in part from the ongoing hostilities in the Middle East continue to weigh on global steel production and, in turn, global coking coal demand. Despite these near-term headwinds, we view the long-range outlook for metallurgical markets as promising due in large part to continued industrialization specifically in Southeast Asia and India. That region continues to add new blast furnace capacity at a rapid pace and is expected to remain on that trajectory for the foreseeable future. Think about it. Almost everything necessary for industrialization requires steel, from buildings to roads to bridges to power stations and to data centers. That's the principal reason why the Wall Steel Association is projecting a resumption in global steel growth in 2027 after several years of contraction. In the domestic thermal market, coal demand was impacted by low natural gas prices, elevated customer stockpiles, and seasonal weakness associated with the spring shoulder season. At the end of June, domestic coal bond was down approximately 10% year-to-date versus 2025. However, with coal generating units returning from planned outages and recent hot weather driving power demand, conditions are setting up for a stronger back half of the year. While low natural gas prices continue to weigh on incremental spot demand, volumes are anticipated to increase meaningfully, supported by improving customer demand and increased rail set availability. This is expected to provide a particular benefit to our PRB segment. as reducing input inventory should result in lower cash cost per ton. Longer term, utilities continue to evaluate extensions to coal plant operating lives with several utilities also revising integrated resource plans to retain coal in the generation mix. The latest PGM capacity auction reinforces the increasingly favorable fundamentals for U.S. power generators. Elevated clearing prices reflect robust electricity demand from data center growth and industrial reshoring, which continues to outpace additions on dispatchable generation. As reserve margins tighten, the value of existing thermal generation assets increases. At the same time, federal funding through the Defense Production Act and other recent policy initiatives is providing support for planned upgrades. These dynamics highlight an increasingly supply-constrained power market where reliability has become a strategic priority. In the international thermal market, uncertainty surrounding conflict in Middle East and the disruption of LNG shipments to the Strait of Hormuz continue to drive market volatility. The resulting reduction in global LNG supply has created significant dislocation in international energy market and increased price volatility across competing fuels. Due in part to these dynamics, the International Energy Agency's latest forecast is projecting a 2% increase in coal-fired generation globally in 2026. In addition, potential disruptions to petcoke supplies from the Persian Gulf could persist for an extended period, which could benefit our high-CV thermal sales into the Indian cement market. Longer term, global power demand is projected to grow substantially. The IEA expects and many more. Daniel Connell, Deck Slone, bringing our total contracted volume to more than 31 million tons reflecting continued strength in the demand for our high quality product. The high CV thermal segment is now nearly fully contracted with average core revenue on the committed volumes of approximately $58 per ton. As for the SEC cash costs, we are increasing guidance by $1 to a range of $39 to $40.50 per ton due to stickier than previously expected inflationary pressures, driving supplies, maintenance, and service costs. In the metallurgical segment, we added 400,000 tons to our sold position, bringing the segment to 8.7 million coking tons contracted for 2026 with approximately 6 million tons priced at an expected average coal revenue of approximately $121 per ton. As for the SEC cash cost, We are lowering our guidance by $2.50 at the midpoint to a range of $86 to $91 per ton. This decrease is a testament to our continued focus on driving best practices at our metallurgical operations as well as strong performances from our longwall operations. For the PRB segment, our contracted position now stands at approximately 50 million tons Thanks, Mitesh.

As we transition into the second half of the year, we remain sharply focused on driving operational excellence across the entire mining platform. While we have made good progress on this front during the past two quarters, we expect to continue to build on our recent momentum. Looking ahead, we remain concentrated on three main priorities for the remainder of the year. First, establishing core as a world's premier global coal producer. while operating in tight alignment with our core values of safety and compliance, continuous improvement, and financial performance. Second, driving strong and improving capital returns in the current soft market environment while laying the foundation for truly exceptional returns as cold markets rebound. And third, capitalizing on the compelling long-term market opportunities that lie ahead, including resurgent US power demand, Tightening Global Energy Markets, and an Ongoing Infrastructure Buildout in the Developing World. In short, we are preparing CORE to succeed on all fronts. As always, I want to thank our employees for their hard work and efforts in helping us deliver a strong quarterly performance. With that, I will hand the call back over to the operator to begin the Q&A portion of our call. Operator, can you please provide the instructions to our callers?

Thank you. Ladies and gentlemen, we'll now begin the question and answer session. Should you have a question, please press the star followed by the one on your touchstone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press the star followed by the two. If you are using a speakerphone, please lift the handset before pressing any keys. One moment, please, for the first question. Your first question comes from George Eady from UBS Financial. Please, go ahead.

Yeah, hey, Tim. Good result here. Thanks for that. Mitesh, maybe just on the high CV segment of Bob too, like what price are you getting for 2027 tons placed today? And can you also remind me perhaps what percent of high CVs contracted next year? and I guess as a consolidated basis, like is $60 a ton about the right level to start thinking for next year there?

Yeah, so George, you know, just to make sure we're clear, you know, the high CV segment has PAMC and also our West Elk product in there. So when you look at next year, you know, we're more than 50% contracted sitting here today. We have been successful in locking in some volumes against API2 indices when they rose most recently into Europe for a West Delk product. And then we also were able to lock in some tons with PAMC as well into India most recently, even for 2027. The India tons today are in that $60 range, as you mentioned. The West Delk tons, I'd say, are more in the upper 40s to low 50 type range. but again you know when you look at what the the balance is you know PAMC obviously at 27 million tons West Elkett call it five to six million tons you know your average realizations in that upper 50s to low 60 range okay cool now that's helpful and then the thermal byproduct like there's a bit of variability there 55 a ton is

What's that? 30% higher quarter on quarter. Can you maybe help us how to best forecast this? Is 55 the right level or is it more sort of mid 40s like prior periods?

So right now, again, it really depends on what the export market is. We're using a lot of that byproduct to blend in with our high CV mix. So as API 2 prices are higher, you're going to realize a higher net back for the byproduct as well. So, again, it's not a perfect number, but I think you'll, for at least the balance of this year, I would expect it to be in that $50 to $55 range.

Okay, great. No, thanks, guys. Just last one if it's okay. DTA, like, what are the impacts to you guys there, and what's the latest you're hearing?

Yeah, George, this is Mitesh here. So, on the DTA front, I think we are 35% owner in DTA. So the impact to us is relatively small. But if you think about it, our marketing team has done a pretty good job. And if you look at our guidance ranges, we were able to move things around to manage the impact on us. There's still impact associated on the cost front with respect to the damages to the equipment and stuff. The good news is DTA does have insurance, which they are going to pursue. But generally speaking, we are managing the impact

Impact from DTA.

Okay, thanks, gents. All the best. Thank you.

Thank you.

Thank you for that. Next question comes from Nick Gills from B. Reilly Securities. Please go ahead.

Yeah, thanks, operator. Good morning, guys. Good morning. I just wanted to really ask about kind of obviously nice job on costs here in 2Q. And so I just wanted to ask first on the MET side kind of how to think about the cadence of costs for the back half of the year. You know, 2Q was below the low end of the range. So should we expect costs to kind of stay towards that low end? And then similarly on the volume side, kind of what would take us towards the low or the high end? Thanks.

Nick, I think as you look at the cost, Josh, of course we've worked really hard on costs, putting in different schedules and doing different things. But I think we're seeing the benefit of that. It's definitely sustainable where we are, and we're certainly looking for ways to improve that. So when you look at the nearly $7 improvement that we had on cost, that's a lot of those things that put in play. We had some production improvements there. And then as we move forward, looking into other things that we can do, You know, get by the long haul move. We got Lear over into the north now where we wanted them. So, I expect to sustain where we are and maybe even improve on that going forward. Now, there could be volatility quarter to quarter, but in general, I think we're in a pretty good place. That's where we are today on the Met Zone.

Great. No, thanks for that, Jimmy. And then maybe just switching gears to capital returns, you know, you obviously had some nice cash inflows thanks to the insurance reimbursements, but there was a working capital build. So just how should we think about kind of the cadence of share repurchases throughout 3Q and 4Q? Thanks.

Well, I think as you look at that, obviously, we got a lot of the insurance money in late in Q2. So going forward in Q3 and Q4, I think you can expect us to have heavier share buyback percentages as we use that cash going forward and You know, we'll stick to our plan of the generating 75% of our free cash flow back to shareholders. But you certainly can expect a higher number when you look in Q3 and Q4, just about cash bill that we have on the balance sheet. So we're certainly going to return a portion of that back to the shareholders.

And just to add to that, on the insurance front, there's about $38 million that we are collecting in Q3 here. As of now, most of that is collected. So that should help. Plus, there's also a little bit of an excess inventory at the mines, which roughly, let's call it about $40 million. And then also, just to remind everyone, we also have 45X credit that is building as working capital. We'll get that next year. Year to date, we have about $25 million in 45X credit that is also inflating that working capital. So when you add all those pieces together, You're close to like $75 to $100 million of swing that could happen in the working capital. The 45X credit will be next year, but vast majority of that we expect to flow this year.

Great. Okay. Well, I'll jump back in the queue, but nice work, guys.

Thank you. Thank you.

Thank you. Your next question comes from Nathan Martin. from Benchmark Company. Please, go ahead.

Thanks, operator. Good morning, everyone. Good morning. Mitesh, just kind of sticking with the balance sheet for a second, you mentioned liquidity over a billion, cash close to half a billion. You know, what's kind of a comfortable target for those metrics? Because I'm assuming you guys are okay with that coming down a little bit, just as we think about what else might be available for shareholder returns.

Yeah, so... Nate, if you just think about what we have said in the past that we try to maintain a net debt neutral balance sheet. But if you look at, for example, last quarter, we were a little bit under. I don't mind going a little bit on the leverage side. So just quarter over quarter, there was almost like a $70 million swing in our net cash position. So that's kind of a rough guide. Now, If our share price provide us an opportunity to be more aggressive, we have the balance sheet and liquidity to support that as well.

Got it. Appreciate that. Maybe a question for Bob. Bob, we look at the revised $31.5 million to $33 million ton guidance for the high-CV thermal segment. What's the split there between PAMC and West Elk? And then can we get an updated breakdown of the $30.9 million committed price tons?

Yeah, so when you look at the full year, you're looking at roughly 26-ish million tons of Bailey bounce then would be West Delft to get to the higher end of the guidance. Obviously, we'll try to run Bailey harder to get to that 27 million ton level like we did in 2025, assuming the market's there. I feel pretty comfortable right now. We're starting to see some strong demand out of India as monsoon nears its end and inventories among the stock and sale trades certainly remain at low levels, and we're receiving inquiries on a daily basis, so it certainly puts us in a good position to try to maximize the total volume out of the PAMC complex. But sitting here today with what we have contracted, of the 30.9 million tons, 15 on the back half of that would be PAMC, and 3.3 of that would be West Elk. and we have about 2.4 million tons still linked to API2 for the back half of the year, Nate. We're modeling in $110 price of API2 to get to that $58 number that we provide in our guidance, but the sensitivity there is about 8 cents a ton. So when you look at July, July API2 price was 120, so we certainly have a tailwind working for us that direction and if it continues to stay strong, that certainly will help.

Okay, great, Bob. And then just while I have you, shifting over to the MET side, consistently weak, right, highball markets there. How are they impacting realizations? What efforts have you been successful using to help lessen that impact? And then what do you think improves that market?

Yeah, you know, we've certainly seen PLV come off from its highs in the last month. However, we believe a lot of that is seasonal. Again, India in its monsoon season. But we expect that, and the forward curve even shows today that prices are expected to improve as we move throughout the back half of the year. You talk about the pricing and the spreads between PLV and HVA. Looking at the first half, I'd say almost all producers were virtually running their minds at full capacity. But given the market conditions, we do believe higher cost production will begin to exit the market, which will tighten high ball supply and provide some support for higher prices going forward. Additionally, we believe the seaborne met market, specifically into our core markets, which would be Brazil and Europe, are poised for recovery. You probably saw just last week, Arcelor did announce that they're restarting three blast furnaces. on the expectation that European steel imports will drop about 45%. So again, that's giving us some confidence, but we certainly have seen an increase in high vol A in the markets, but we've been successful with our premium product to get that place not only in the Atlantic markets, but also in Pacific markets against PLB. So when you look at the back half of this year, We have about 4.3 million tons contracted for the back half, of which 2.7 is indexed, of which 30% of that is linked to PLV. So, again, I think that you'll continue to see, you know, good pricing out of us for the back half of the year.

Yeah, Nate, it's Dak. And I'll just add, you know, as you noted, look, we've had some high vol A production come back into the market or, you know, in the case of one mine come into the market, about 5 million tons in the first half. But actually, for all the other mines in the US system, we saw a decline of about 3 million tons. So there is a counterbalance there. We are seeing supply come off. This is a challenging market for a lot of folks. I think we've seen some guidance come down suggesting, again, that this is pretty tough sledding out there. Would also add that, you know, while we talked a lot about new glass furnace capacity in Southeast Asia, Those numbers just keep getting bigger. So if you look today right now in terms of new blast furnace capacity expected to be added by around 2030, it's 185 million tons. It's a huge number. And even if you haircut that, that's going to be a big drumbeat and a big sort of pull on high-quality US coal. As Bob said, the Lear brand, while that's HVA, it's getting really good traction in Asia. I think we've had no problem at all placing those tons. Obviously, we wish the volume We wish the pricing were a little higher. We have seen some contraction in that spread between PLV and HVA, so I think you're seeing a little bit of, you know, the evidence that HVA is making it into that market. So there certainly are positives out there. I guess one final thing I'll say, we've had two years of contraction, you know, on the steel front, hot metal production front. That can't last, won't last. WSA is now projecting growth for the second half of the year and in the next year. So certainly some positive indications that things could change.

Very helpful, guys. Appreciate the time. I'll pass it on.

Thank you for that. As a reminder, if you wish to ask a question, please press star one. The next question comes from Matthew Key from Texas Capitol. Please go ahead.

Good morning, everyone, and good job on the quarter. Most of my questions have been asked, but I wanted to ask about the outlook in the metallurgical segment next year, if I may. Just given that Lear South is running well, what could be the incremental production potential in the metallurgical segment in 2027 relative to 2026?

Well, on the production side of it, Matt, we're still working with some of the schedules we have. We want to get to where we're running very, very consistent there. We haven't really got to a number where we can give incremental tons. As I said before, I think coming out of our LEER complex, we should expect somewhere between 8.5 million and 9 million tons.

Got it. No, that's helpful. And just one more quick one. You mentioned in a prior answer that you added a few API 2 linked tonnage for 2027. Just as I look out to 2027 in that segment, is it possible that you would be able to achieve a greater exposure to that benchmark relative to 2026? And is that something that you're aiming to do as you kind of build out that book for next year?

So we had this year, I think, nearly 4.5 million tons linked to API 2. Some of the API 2 deals we've done were actually fixed price, not necessarily indexed link, but we secured those at the time that the API 2 price was on the rise. But I think to answer your question, I would expect a very similar portfolio year on year when it comes to what we have indexed link versus fixed.

Got it.

All right. Appreciate the time and best of luck moving forward.

Thanks.

Thank you. Your next question comes from Chris Lapamina from Jefferies. Go ahead.

Hey, thanks, guys. Thanks for taking my question. So basically, maybe it's a question for Jimmy. If we look at the financial performance for you guys, I think EBITDA, excluding the insurance proceeds, increased by like 15% from the first quarter to the second quarter. And the improvement was really, it was cost-driven. And, you know, we had gone back three months ago and and many more. I mean, again, it's something that we had not expected. I think it's a pretty big surprise to the market as well. So just trying to understand what's changed at core to deliver this sort of result. Thank you.

Thanks for the question, Chris. I think when you look at where we are, we mentioned early on that we wanted to, you know, put these two companies together and bring all the best practices together. I think when it comes to our long walls, we're getting there. We're not 100% there yet. And some of the schedule changes that we made, of course, Weather Reduction and Forest at Lear South, changed the schedules there with the same expectations for production. When you look at Lear, Lear's moved over into the better themes there in the north. Now we'll always have some geological problems and things there, but the expectations are to continue to work with all of the enhancement that we've done to improve the cost because at the end of the day, that's what we control. So we're trying to work as hard as we can to get a consistent cost basis there You know, obviously, mining is mining. We'll have geological events here and there. But when you look at it over an annualized run, we think we're at a good cost number now and with some opportunities to even improve upon that. When you look over on the high CV thermal side, you know, we had a first quarter that was higher than what we expected. There were some reasons for that. But we got it back in line here in the second quarter. And we'll continue to drive on those cost initiatives to do that. Pennsylvania Mining Complex on the high CV thermal with West Elk coming on and running at really good numbers now. That helps that a lot, blends down. So we're not satisfied with where we are on the cost side, but I think what we're doing is sustainable and I think there is room for improvement going forward.

That's great to hear. Thank you. Thank you.

Thank you for that. Our next question comes again from and Nick Gills from B-Reilly Securities. Please go ahead.

A follow-up. I just wanted to clarify from earlier. Just on DTA, did you quantify the kind of impact that the outage is having to realizations today? And then what's kind of your sense in terms of timing when DTA could be kind of back up and running at full steam or are those decisions kind of forthcoming?

Nick, I think it's too early to assess and provide you the numbers, so to speak, on what the damage is and stuff like that. We are going through that process right now. But as I said, from a core perspective, our marketing team did a good job, and it kind of reflects in the guidance that we provided from an impact perspective that it is very manageable. I think the realization numbers that you see take into account The changes that we have to make, an extra cost we have to incur to read out vessels and stuff like that. So I think it's quite manageable. We'll provide you better numbers when we have it. Right now it's too early to say. There are some capacity constraints. The terminal is still working and we are moving things through, but there are some capacity constraints at this point right now.

And Nick, it's really We don't have all the numbers yet. They're continuing to work on that to see what parts, if any, we can salvage and we can put back in. But I will say the team down at DTA has done a really good job of finding ways to move some of the stranded coal that's there. But we don't know the actual full impact yet because we don't really know exactly how many of the parts we can use over or what we're going to have to engineer and do as we move forward. But as Mitesh said, just stay tuned. We'll have a better handle on that. You know, and we're not the majority owner there. We own 35% of that. So, you know, we'd be driven by our partners there. But we still don't have an exact answer or timing for it. And just stay tuned on that. Once we give it, we'll certainly give an update on that.

Understood. No, that's helpful. And sorry, just to clarify again. I mean, the impact is really going to be seen in realizations. It's not like there's extra costs embedded in your cash cost guide.

No. So when we report our realized number, they are net back at the mine. So we take that impact out of the reported numbers.

Okay, great. One more follow-up, if I could. It hasn't gotten maybe a ton of attention on this call. Just on the core innovations group opportunity, Mitesh, I was wondering if you could just kind of speak to what kind of revenues does this segment generate today and then What's ultimately the long-term opportunity here? Thanks.

Yeah, so if you think about core innovations, that platform focuses on four key verticals. We have talked about red earth and critical minerals aspect of it, which Jimmy mentioned in his prepared remark that we were selected for a grant from the US DOE to construct a pilot-scale facility for the extraction of red earth elements and critical minerals. So that's ongoing. But the other verticals are aerospace and defense. So we have been doing some bolt-on acquisitions on that front that provide composite tools and carbon fiber composite parts to aerospace and defense companies. That business does about $20 million in revenue, so it's a real business. We have a factory that produces tooling equipment, parts, is participating in some of the very high-profile projects of some of the larger defense companies. We also have the building products vertical, which deals with coal plastic composite products, like decking boards and stuff. That's more in a nascent stage where we are going through testing and we are going through pilot facilities and stuff like that, but that uses coal as a filler stock in the CPC. and then the last vertical is Battery Technology and Carbon Management. We have a joint venture with a company called CBAT and that is focused on developing a material called obsidia which we think could be a good replacement for battery graphite. As you know, 90% of that is sourced from China and we are trying to develop a domestic feedstock for it. Some of these are very early stages. There's no revenue tied to it, but the aerospace and defense is more tangible, and there is revenue and EBITDA tied to it, although EBITDA is still pretty small when you look at core as a platform. But a lot of growth potential. These are markets with multi-billion dollar total addressable markets.

Mitesh, I really appreciate that breakdown. I guess just from a capital allocation perspective, I mean, is this an area where you might be willing to make kind of more smaller bolt-on acquisitions, or is this kind of, you know, government funding-led and seeing where it goes?

Yeah. No, we have been making some bolt-on acquisitions, as I mentioned. I think you can – we did one small one, single-digit million-dollar type of an acquisition in – in January of this year. So it's an ongoing process for us, but I don't want to get too much ahead of ourselves. I'm not willing to say that this is going to be a significant drain on our capital anytime soon, right? Like these are things that we feel like there are good opportunities and we are in the process of proving it out and we are making some good progress. Really excited about the innovations team. I think they have done some really good work over the last few years here.

Awesome. Well, thanks again, guys. Best of luck.

Thank you.

Thank you. There are no further questions at this time. Please proceed for the closing remark.

Thanks, everyone, for joining us on the call today. Hopefully, we provided what you needed there, and we look forward to speaking again and to our next earnings call. Thanks, everybody.

Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.